GMAB - Genmab upgraded at UBS; says most of the pipeline is for free

Genmab (GMAB +5.6%) ADRs are trading higher on Wednesday after UBS upgraded the Danish biotech to Buy from Neutral, arguing that the company’s valuation does not reflect value for its pipeline assets excluding Epcoritamab, an experimental therapy for blood cancer. Based on a sum-of-the-parts valuation, the analysts led by Laura Sutcliffe project nearly 460DKK per share for the pipeline ex-Epcoritamab. They also note that Genmab (NASDAQ:GMAB) has lost nearly 16% in the year so far amid adverse market conditions, changes to prospects of certain pipeline assets, and the arbitration with its collaborator Johnson & Johnson (NYSE:JNJ) over royalties on monoclonal antibody Darzalex. The analysts call Genmab (GMAB) “a profitable biotech with a remarkable R&D track record” and argue that the selloff represents a compelling entry point ahead of several data readouts scheduled for H2. The arbitration with J&J (JNJ) is an overhang on shares, the team acknowledges. Still, they argue

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Genmab upgraded at UBS; says “most of the pipeline is for free”